Uganda discovered commercially viable oil deposits in 2006. Estimated oil reserves as of
September 2012 stood at 3.5 billion barrels. Since the discoveries, there has been much public
debate on the types of public policies that the Government of Uganda (GoU) can implement
in order to avoid or minimize the economic, social and political dislocations that have usually
accompanied the exploitation of oil and gas in other African countries. It is important to note
that the discovery and eventual exploitation of natural resources, such as gas and oil, are
necessary but not sufficient conditions for the upheavals that are collectively referred to as
“the curse of natural resources.” The reason why many African countries that have significant
endowments of commercially viable oil and gas reserves often end up with the curse is
that they do not have institutional arrangements that guarantee the rule of law. Without
appropriate legal and judicial systems—that is, those that adequately constrain civil servants
and politicians—the latter are likely to engage in corruption and other forms of political
opportunism, and fail to implement policies to allocate resources efficiently and equitably and
hence, enhance human development. It is hoped that Uganda will use its newly-discovered oil
and gas resources to promote genuine economic growth and human development. This study
employs a perception analysis of the views of key stakeholders on the suitability and impacts
of available spending options.